The key benefit of countries engaging in trade based on comparative advantage is that

Question

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Comparative advantage allows countries to specialize in the production of goods and services in which they have a lower opportunity cost, and trade with other countries to obtain goods and services in which they have a higher opportunity cost. This leads to increased efficiency in production and increased consumption for both countries involved in the trade. Therefore, both countries will be able to consume more than they would with no trade.

The Key Benefit of Countries Engaging in Trade Based on Comparative